Photo: Nina zotina / RIA Novosti
Amid falling demand for housing in Moscow developers have started instead huge discounts to offer customers an almost free — but only in the first year of the mortgage. It is effective and does not entail high costs, according to an analytical article published on the website of the center “Indicators of real estate market” (IRN).
According to analysts, the introduction in Moscow a regime of isolation triggered a collapse in demand for apartments. But developers in April, reacted to the crisis with restraint: in the city by inertia continued to grow the prices for new buildings, at the same time reduced the average size and prevalence of discounts.
Pricing policy began to change in may. The most popular method of attracting customers was the program of subsidizing of the mortgage, “which, in principle, equivalent to the discount from the price of the apartment,” experts say.
“The most common subsidies with state of the mortgage, which rate does not exceed 6.5 percent. For the first year (sometimes slightly less) offer developers to charge almost all of the interest on itself, the result is the rate for the buyer is temporarily reduced to a symbolic 0.5 percent or so” — calculated in IRN.
But in any case, analysts stress, in terms of discount from list price subsidizing mortgages in the first year does not exceed 10 percent discount. “During the previous crisis, in 2015-2016, discounts more than 10 percent were common. Thus, we can say that the current crisis, developers carry better than the previous. Otherwise they would have been more generous,” conclude the experts.
Earlier in may it was reported that the initiative of the Russian Central Bank to release mortgage borrowers from paying the insurance could trigger a rise in interest rates on loans to buy housing. About the risk of increased cost of borrowings stated in the Association of Russian banks (ADB).
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